Dodd-Frank Act Legal Analysis - Finance Law Brief

July 27, 2010
By Aviva Cuyler on July 27, 2010 9:50 AM | | Comments (1) | TrackBacks (0)
We've seen a good amount of key analysis published on JD Supra relating to the recently passed Dodd-Frank Act. For your reference, here's a look at some of it:

Dodd-Frank Act:
A JD Supra Finance Law Brief

Securities Industry Practice Alert - The Dodd-Frank Wall Street Reform and Consumer Protection Act [Fox Rothschild]
The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act) was signed into law by President Obama on July 21, 2010. The official purpose of the law is to "promote the financial stability of the United States by improving accountability and transparency in the financial system, to end 'too big to fail,' to protect the american taxpayer by ending bailouts, to protect consumers from abusive financial services practices and for other purposes." The Dodd-Frank act affects multiple industries and legislation, containing numerous amendments to existing laws and creating several new laws as well. This alert summarizes these areas.

The Dodd-Frank Act: Non-Binding "Say-on-Pay" at Public Companies [Foley Hoag]
Among the many elements of the massive Dodd-Frank Act are provisions applicable to public companies requiring defined "say-on-pay" votes. These are shareholder votes on executive compensation generally, and executive compensation relating to business combinations, known as "golden parachutes" ... Under the Act public companies must...offer shareholders the opportunity to vote on two resolutions... [more]

Dodd-Frank Redefines "Accredited Investor" [Sheppard Mullin]
Prior to the enactment of the Dodd-Frank Act ... the definition of an "accredited investor" under Rule 215 of the Securities Act of 1933 and Rule 501 of Regulation D included a natural person with a net worth of at least $1 million, either individually or jointly with the investor's spouse, and the value of such investor's primary residence was included in the calculation of his or her net worth for purposes of determining "accredited investor" status... [more]

[See also: Congress Changes the "Accredited Investor" Calculation - Effective Immediately - Warner Norcross & Judd]

Financial Reform Legislation Imposes New Requirements Relating to Asset-Backed Securities [Katten Muchin]
The bill contains, among other things, provisions addressing risk retention, conflict of interest issues, and the treatment of Nationally Recognized Statistical Rating Organizations (NRSROs) under existing securities laws... [more]

The Corporate Governance and Compensation Provisions of the Dodd-Frank Act [Morrison & Foerster]
The Act includes several important corporate governance and compensation provisions that will impact most public companies... Because many of these provisions - including Say-on-Pay - will likely impact the 2011 proxy season, it is important to begin preparing now for all of the new statutory requirements, the SEC's implementing regulations, and new stock exchange listing standards. [more]

Many Private Fund Managers Must Register as Investment Advisers under Financial Reform Legislation [Edwards Angell]
The Dodd-Frank Wall Street Reform and Consumer Protection Act... brings significant changes for managers of hedge funds, private equity funds, and - to a lesser but not insignificant extent--venture capital funds as it mandates investment adviser registration and reporting for many private fund managers... [more]

Corporate and Securities Alert: The Dodd-Frank Act: Provisions Affecting Corporate Governance And Executive Compensation Disclosures For All Public Companies [Fenwick & West]
The Act also makes significant changes to corporate governance and executive compensation rules for public companies in all industries. This alert summarizes these new requirements, their effective dates, and early impacts on companies in the technology, life sciences and clean tech industries. [more]


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1 Comments

Thanks for this useful overview of Dodd-Frank. It seems to me that this Act will keep regulators and issuers' lawyers busy for many years. However, with regard to its purported aim of reforming the capital market and spurring economic recovery, I would say the measure fails.

Unlike the securities laws of the 1930s, which were based on extensive investigations by the Pecora Commission, with bipartisan support, Dodd-Frank seems to be a hasty, cut-and-paste endeavor, mainly done in dark of night. See: Why Dodd-Frank Won't Bring Economic Recovery.

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